Publication date: 08/13/2020

Consider New Levels

Use the Consider New Levels option if you suspect that some of your observations are outliers with respect to the specified levels of the categorical variable. When you select the option, a menu asks you to specify the prior probability of the new level.

Observations that would be better fit using a new group are assigned to the new level, called “Other”. Probability of membership in the Other group assumes that these observations have the distribution of the entire set of observations where no group structure is assumed. This leads to correspondingly wide normal contours associated with the covariance structure. Distance calculations are adjusted by the specified prior probability.

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